Suppose the Economy Is Hit by a Shock and We

question 105

Multiple Choice

Suppose the economy is hit by a shock and we observe that the price level has and whereas real GDP has increased. We can conclude that this shock was

• A)a negative AS shock.
• B)a negative technology shock.
• C)a positive AS shock.
• D)a negative AD shock.
• E)a positive AD shock.

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Definitions:

Stimulant Drugs

Substances that increase activity in the central nervous system or the body, leading to increased alertness, attention, and energy, such as caffeine or amphetamines.

Nucleus Accumbens

A region in the brain involved in the reward circuit, associated with motivation, pleasure, and reinforcement learning.

Dopamine

A neurotransmitter involved in many functions including mood, sleep, learning, and the reward system.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, affecting mood and arousal.